Stocks slid Monday, with major indices tumbling by over 2% during the worst points of the afternoon session, as investors nervously eyed the potential ripple effects of the default of a major Chinese real estate company, as well as ongoing debates over the debt limit in Washington.
After defying gravity for most of the summer, September is shaping up to be a tough month for markets, with major benchmarks in retreat for a third consecutive week. At its worst point of the day, the Dow dropped by as many as 972 points, or 2.8%. However, the index closed pared losses to close lower by 1.8%, posting its worst session since July. The S&P 500 and Nasdaq each posted their worst one-day drops since mid-May.
The CBOE Volatility Index, or Vix (^VIX), jumped by more than 30% to its highest since May, as a confluence of risks roiled markets.
Shares of China Evergrande Group (3333.HK) plunged by 10% on the Hong Kong Stock Exchange as fears mounted that the…